(Bloomberg) -- The Grand Hyatt New York, the Manhattan hotel that launched Donald Trump's career as a real estate developer, is being redeveloped by an investor group that plans to demolish the existing structure and replace it with a massive mixed-use building.
TF Cornerstone, a Manhattan developer, and MSD Partners LP, the investment firm that manages money for Michael Dell and his family, are taking control of the ground lease and existing hotel on East 42nd Street. They plan to replace it with a 2 million square-foot tower that includes office and retail space as well as a new Hyatt hotel, according to a statement.
The developers intend to contribute air rights from Grand Central Terminal under the rules of a recent rezoning, according to the statement. The existing hotel, which will operate in its current form until at least the end of 2020, was developed by Trump in the late 1970s.
A 2017 rezoning of the Midtown East area paved the way for taller buildings and improvements to public spaces and transit, including Grand Central. SL Green Realty Corp. is building One Vanderbilt, a $3.1 billion skyscraper slated to open August 2020 next to the transit hub. Several blocks away, JPMorgan Chase & Co. plans to tear down its Park Avenue headquarters and erect a new 2.5 million-square-foot tower.
The TF Cornerstone and MSD project, which requires approval from city and state officials, was reported earlier Thursday by the Wall Street Journal.
To contact the reporters on this story: Patrick Clark in New York at pclark55@bloomberg.net;Lily Katz in New York at lkatz31@bloomberg.net
To contact the editors responsible for this story: Debarati Roy at droy5@bloomberg.net, Steven Crabill, Pierre Paulden
©2019 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
